Bitcoin exchange Mt. Gox announces distribution of assets
Bankrupt Bitcoin exchange Mt. Gox has announced that it will begin distributing assets to victims of its 2014 hack in July. Nobuaki Kobayashi, the trustee in charge of the rehabilitation, confirmed that repayments in Bitcoin and Bitcoin Cash will be made starting in early July 2024, stressing the need for careful security measures.
Background of Mt. Gox and the stolen Bitcoins
Mt. Gox, which once processed over 70% of Bitcoin transactions, filed for bankruptcy in 2014 after around 740,000 Bitcoins were stolen by hackers. Those stolen Bitcoins are now worth about $15 billion. Efforts to compensate victims have encountered numerous delays. A Tokyo court set a deadline of October 2024 for the civil reorganization plan. In May, the exchange moved 140,000 BTC for the first time in five years, likely in preparation for repayments.
Hope for victims and distribution of assets
Victims who have waited over a decade to get their funds back now have new hope. The repayments will include 142,000 Bitcoins, 143,000 Bitcoin Cash and 69 billion Japanese yen. These assets will be distributed to approximately 127,000 creditors, with partnerships with exchanges playing a role based on the progress of due diligence.
Concerns and impacts on the Bitcoin market
There are concerns about the potential impact of large payouts on the Bitcoin market price if recipients sell their refunded funds. Nevertheless, the refunds mark a significant step toward resolving a pivotal incident in Bitcoin's history.
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